Genentech's data driven approach to portfolio planning delivers flexibility for business and workforce competitiveness

Transcription

1 Genentech's data driven approach to portfolio planning delivers flexibility for business and workforce competitiveness Chirag Kadiwar Portfolio Strategy and Analytics

2 Topics Background on Genentech Business and Work Real Estate Portfolio Facts and Drivers Portfolio Observations, Actions and Results Occupancy Utilization Long-Term Outlook

3 Founded more than 35 years ago, Genentech is a leading biotechnology company that developes medicines to treat patients with serious or life-threatening medical conditions Facts Founded in 1976 Became a member of the Roche Group in March 2009 Headquarter in South San Francisco, California for all Roche pharmaceutical operations in the United States Over 12,300 employees Genentech sells approximately 35 products in the US US Pharmaceutical sales were $14.7 billion in 2012

4 Business Changes New Platforms for Cancer Research with ADCs, Insourcing Manufacturing Genentech s business and work continues to evolve Work Changes Global work, new technologies, changing workforce demographics continue to push how we get work done.

5 Real Estate Portfolio Facts 5 Major Locations o South San Francisco, CA (HQ) o Vacaville, CA o Hillsboro, OR o Oceanside, CA o Louisville, KY +400 acres of owned land 82 Buildings (leased and owned) Portfolio of 7.2 MSF of space Hillsboro Vacaville South San Francisco Oceanside Louisville

6 Office Portfolio Drivers 1. Portfolio Effectiveness 95% space occupancy by 2013 Target < 200 GSF/seat Increase real-time space utilization Genentech as a Better Place to Work 2. Portfolio Elasticity Maintain 10% flexibility to increase or reduce portfolio at a short notice

7 Occupancy CAFM system implemented in late 2010 Portfolio planned at 92% with 8% reserve Occupancy lags demand by 8% capacity/ demand 92% 84% 8% Projected Demand Occupancy Rate business units hire globally we can t hire as quickly attrition unaccounted for in planning # of Seats Total Square Footage Seat Demand Occupancy

8 Space Policies Real Estate works with Business Functions on an annual basis to allocate blocks of seats Adjacency requests will be accommodated based on space availability, amount of disruption, and cost Real Estate retains ownership of all unoccupied seats (allocated or not) Company-wide adoption of hotel program

9 Modernize the Work Environment 1. Transition from 8 x 10 to 6 x 8 workstations 2. Increase capacity by min. 20% to use space more efficiently 3. Emphasis on informal collaboration via unconventional work environments 4. New technology for distant collaboration 5. Change management process 6. Achieved better than 200 GSF/Seat

10 Reduced Flexible Lease and Optimized Portfolio Planned portfolio at 95% occupancy Leased Space Exited at HQ capacity/ demand 8% 92% 95% $3M annual reduction in operating costs 84% # of Seats Total Square Footage Seat Demand Occupancy numbers used in this presentation is for illustrative purpose only, % reflect the actuals

11 Real Time Utilization is Even Lower Average utilization of individual spaces at ~35% Almost 2/3 of space is under utilized capacity/ demand Real Time Utilization Data 35% Employees in Meeting, Travelling, Vacation or Working Remotely Spaces lacking buzz # of Seats Total Square Footage Seat Demand Occupancy Utilization numbers used in this presentation is for illustrative purpose only, % reflect the actuals

12 Workplace Research Business Intent Interviews what outcomes will indicate that your business has been successful? Space Utilization Observed work patterns of spaces in use, including individual and common space types Post Prototype Occupancy Survey Online survey to evaluate how well the new work environment supports the desired successful behaviors Evolving Genentech to be a better place to work Work Practices Workshops what will you need to do in order to achieve the outcomes defined by your senior leaders? Enablers Workshops what things will support your ability to do the work essential to achieve the outcomes defined by your senior leaders? Choice & Collaboration Survey Online survey to understand individual, team, and department collaboration and work styles

13 New Ways of Working environment work practices results enable drive Social, technological and physical Group assigned individually unassigned spaces with partial work from home arrangement Business lounge 10 prototypes across the campus in 2013/14; 50 employees in each prototypes, a total of 500 employees

14 Results More lease exits in 2013 Leased Space Exited at HQ $2M annual reduction in operating costs capacity/ demand numbers used in this presentation is for illustrative purpose only, % reflect the actuals

15 Results and Next Steps More lease exits in 2013 Planning the portfolio with a headcount higher than capacity and continue to optimize New office building online in 2015 Leased Space Exited at HQ $2M annual reduction in operating costs capacity/ demand numbers used in this presentation is for illustrative purpose only, % reflect the actuals

16 New Office Building 250,000 GSF with 1300 seats and a cafeteria Full implementation of New Ways of Working to optimize space while creating an energized work environment

17 Tradeline 3 1. Develop a robust understanding and accurate reporting of key metrics for your organization 1. Partner with business groups with a focus on adding value to business 1. The future of workplace is not a destination, it s a journey!

18 Questions Chirag Kadiwar